The Red Velvet Fairy Wrasse, Cirrhilabrus rubrisquamis, is a deep-reef species known with certainty from the Chagos Archipelago in the western Indian Ocean. The juvenile holotype, collected between 41 and 48 meters and measuring about 1.6 inches, is salmon pink along the upper body with vertically elongated red marks centered on the scales, three broken white lines running down the back, a yellow upper head, a curved magenta streak across the cheek, and a broadly pale-yellow margin on the outer dorsal fin. Technical characters used to separate it from its relatives include two rows of cheek scales, five median predorsal scales, 16 gill rakers, a moderately large eye, and a rounded caudal fin. Fish presumed to be adults have been filmed in Chagos at 60 to 70 meters, though adult coloration and maximum size remain unresolved because the species is still formally described from a single juvenile specimen.

Plan adult housing around a minimum of 55 gallons, with a layout that balances long, unobstructed swimming lanes against a well-built rock structure containing crevices and caves. This fairy wrasse does not bury itself in sand at night; it wedges into rockwork and may generate a mucus cocoon, so a deep sand bed offers no particular benefit. Jumping is the most common cause of loss. Startled individuals launch upward, so a secure top and screened or covered overflow are not optional. Published volume recommendations for this name vary widely, from 30 to over 100 gallons, which reflects how little confirmed husbandry information exists for the species rather than genuine flexibility in its needs, and erring toward a larger, well-covered system is the safer approach for a mobile planktivore reaching roughly 4 inches.